Phillips 66 Midstream Earnings Higher but Chemicals Lower, Announce Additional Buybacks

Houston based oil refiner Phillips 66 on Friday reported weaker than expected third quarter earnings. PSX reported adjusted EPS of $4.63, up 19.6% year-over-year increase but short of the consensus estimate of $4.76. Revenue of $40.23 billion exceeded the consensus of $38.96 billion, however. Midstream income was higher, but the Chemicals segment was lower due to lower margins. Global olefins and polyolefins utilization was at 99% for the quarter. The board approved an additional $5 billion in share repurchase authorization, … Continue reading “Phillips 66 Midstream Earnings Higher but Chemicals Lower, Announce Additional Buybacks”

Occidental Acquires Canadian DAC Technology Firm Carbon Engineering for $1.1 Billion

Houston based oil and gas producer Occidental Petroleum reported on Tuesday agreed to pay $1.1 billion for Canadian direct air capture (DAC) supplier Carbon Engineering Ltd to help it develop a string of carbon-capture sites it hopes will profit from tackling climate change. Occidental said it has been working with Carbon Engineering on DAC deployment since 2019. The deal is another from oil majors looking to add to participate in energy transition. In early July Exxon Mobil (XOM) bought Dallas … Continue reading “Occidental Acquires Canadian DAC Technology Firm Carbon Engineering for $1.1 Billion”

Texas Electricity Prices Surge Over 800% with Power Usage at All Time High

They say everything is bigger in Texas, this weekend you can add power usage to that list with Southeast Texas is locked into a strong high-pressure system. Electric Reliability Council of Texas (Ercot), the grid operator for the state said that electricity prices for the power grid rose to over $2,500 a megawatt-hour for Sunday evening. This is a gain of 800% from Saturday’s high of around $275 and will strain the grid. Ercot said that power usage on Sunday … Continue reading “Texas Electricity Prices Surge Over 800% with Power Usage at All Time High”

Exxon Plans Massive Lithium Plant in Arkansas to Improve Energy Transition Security for the U.S.

Fresh on the heels of buying Dallas based pipeline operator Denbury (DEN) for $4.9 billion, Exxon Mobil is planning to build one of the world’s largest lithium processing facilities in Arkansas according to people familiar with the matter the Wall Street Journal reported Thursday. The plant would have a capacity to produce 75,000 to 100,000 metric tons of lithium a year. This would equate to around 15% of all finished lithium produced globally last year at scale. Australia is the … Continue reading “Exxon Plans Massive Lithium Plant in Arkansas to Improve Energy Transition Security for the U.S.”

Exxon Buys Pipeline Operator Denbury Solidifying Energy Transition Strategy

Exxon Mobil (XOM) announced on Wednesday it is buying Dallas based pipeline operator Denbury (DEN) for $4.9 billion, representing $89.45 per share as of its closing price on July 12, 2023. In an all-stock deal Denbury shareholders will receive 0.84 shares of XOM for each of its shares. There have been rumors of how Exxon was going to spend it’s $32 billion in cash, with rumors of Pioneer Natural Resources earlier in the year. The deal is a move by … Continue reading “Exxon Buys Pipeline Operator Denbury Solidifying Energy Transition Strategy”

Ethanol Demand Pushes US Raw Sugar Futures to 10-Year High as Weather Hits Harvests

Raw sugar futures in the US have continued to rise to over ten-year highs accelerating after breaking through the high from late February spurred on by a number of factors. Futures extending their rally to over $24.5 per pound in April, reaching the highest since March 2012. Disappointing harvests in some of the world’s largest producers India, China and Thailand from bad weather has hit sugar production in all three countries. At the same time China’s economy has begun to … Continue reading “Ethanol Demand Pushes US Raw Sugar Futures to 10-Year High as Weather Hits Harvests”

US Raw Sugar Futures Hit 6-Year High on Biofuel Demand Expectations

Raw sugar futures in the US broke through the high from late February spurred on by a number factors. With sugars use in biofuel, in particular in Brazil for ethanol the surprise moves by OPEC+ to cut production triggered prices across the energy fuel structure. WTI oil futures rose 6.3% on the move, Brent futures rose 6.4% and gasoline futures rose 2.98%. Raw sugar prices surged over $22.4 per pound Monday, hitting six year highs. Sugar was already higher, up … Continue reading “US Raw Sugar Futures Hit 6-Year High on Biofuel Demand Expectations”

CERAWeek 2023 Key Speakers for Energy Traders and Investors

S&P Global hosted CERAWeek is one of the world’s premier energy events. The significant players from the world over will be in attendance March 6-10, 2023, in Houston. Speakers include CEO of Oil and Gas majors including ExxonMobil, Chevron, Oxy, Shell, Saudi Aramco and Total. There will also be key political speakers including the US Secretary of Energy Jennifer Granholm. This year’s theme is “Navigating a Turbulent World: Energy, Climate and Security”. The global energy industry is facing a welter of … Continue reading “CERAWeek 2023 Key Speakers for Energy Traders and Investors”

Ethanol Slide Continues to Over 1 Year Low.

Ethanol losses continued below $2.2 per gallon for the first time since February 2022 Thursday, pressured by an overall negative tone in energy markets pressured by higher rates and inflation forcing recession. Price pressure came from news that Corn-for-Ethanol use was stronger than expected. Corn-for-ethanol use totaled 443.6 million bu. in January, according to USDA, topping traders’ expectations of 436.8 million bushels. The USDA expects 5.25 billion bushels of corn to go to corn ethanol production in 2022-’23, below the … Continue reading “Ethanol Slide Continues to Over 1 Year Low.”

BOEM Sets U.S. Gulf of Mexico Oil and Gas Lease Sale for March 29, 2023

The U.S. Bureau of Ocean Energy Management (BOEM) will hold an oil and gas lease sale in the Gulf of Mexico in March 2023 it announced Friday. The lease sale is one of three offshore lease sales initially cancelled by the Biden Administration in May 2022. The Gulf of Mexico Oil and Gas Lease Sale 259 will offer approximately 13,600 blocks on 73.3 million acres in the Western, Central, and Eastern Planning Areas on the U.S. Outer Continental Shelf. The … Continue reading “BOEM Sets U.S. Gulf of Mexico Oil and Gas Lease Sale for March 29, 2023”